Originally Posted by
stalingrad
I agree with Gfoo 100% that this new bubble will end badly for singaporeans. I also agree that government policies on CPF and other issues are partly to blame for the inflating and deflating of property bubbles in recent memories.
But my biggest concern is the banks and the financial health of the country if this continues unabated for one or two years. We are creating our own subrpime problems, if more and more properties are sold on leverage, rental income keeps slipping, more and more defaults occur, and banks begin to have more and more serious non performing loan problems, the whole finacial industry may be in risk of failing.
Look at the US, it is the only superpower, and it is losing its preeminent position because of the deflating of the housing bubble. But it is able to save itself by printing a massive amount of money. Singapore is a small
country, and it wouldn't be able to save itself if our own housing bubble begains to deflate, dragging our banks with it. it is something all singaporeans should spending time pondering.
But my posting is also a warning to all those speculators. Of course, our government is not stupid, and it will not allow this bubble to get inflated too big. sooner or later, measures will be announced to cool off the property market before it gets too big. When they announce those anti-speculation measures, the speculators will cry all the way, not to bank, but to their own grave.